Determinants of carbon emission disclosure

Abstract

This research aims to analyze the determinants of carbon emission disclosure. Determinant factors analyzed in this study are family ownership, financial slack level, social reputation, and industry regulation. The study uses 537 observations from 179 samples of public companies in natural resource and manufacturing industry in Indonesia for the year 2012- 2014. The result of this research shows that the average level of carbon emission disclosure is only 6,25% which indicates that the awareness about carbon emission issue is still low. The regression result shows that financial slack level, social reputation, and industry regulation have a significant positive effect on the carbon emission disclosure level, whereas the family ownership has an insignificant effect on the carbon emission disclosure level. This research can be used as reference for regulator to create some regulations regarding carbon emission issues to increase awareness of businesses about their emission.